Kinder Morgan (KMI) has agreed to a $640 million deal for Outrigger Energy II's North Dakota gathering and processing G&P network. (Source: Shutterstock)
Kinder Morgan (KMI) has agreed to a $640 million deal for a North Dakota gathering and processing (G&P) network currently owned by Outrigger Energy II, the company announced Jan. 13.
KMI subsidiary Hiland Partners Holdings LLC will make the purchase, which includes a 270 MMcf/d processing plant and a 104-mile rich gas gathering header pipeline with 350 MMcf/d capacity. The network connects the Williston Basin to KMI markets.
The G&P is backed by long-term contracts and commitments, Kinder Morgan said in its announcement. KMI said the acquisition has an adjusted EBITDA of about 8X on a full-year basis.
KMI intends to fund the transaction with cash-on-hand and short-term borrowings and expects to close the deal by the end of March.
“We’re pleased to be integrating this complementary system with our existing Hiland gas assets to aggregate additional supplies from the Bakken,” said Tom Dender, KMI natural gas midstream president.
Kinder Morgan has been expanding its natural gas footprint nationwide. In December, the firm announced a $1.4 billion FID for the Mississippi Crossing Project, which increased its presence in the Southeast.
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